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Buyer's Market & Seller's Market As a Realtor

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Cash For Your Home AZ
Cash For Your Home AZ

Have your agent closely examine the comparable sales and determine if theres anything that may affect the local market where youre buying one way or the other, and act accordingly.

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What Does It Mean? Buyers Market & Sellers Market Website: www.cashforyourhomeaz.com/sell-your-home/
As a Realtor whos been practicing for nearly ten years, I have probably heard it a thousand times: Oh, well, were in a buyers market or Were in a sellers market. So which one is correct?
The real estate market is very LOCAL. How local? Extremely. You have to take it further than trying to evaluate the market on a state level, on a city level, even on a neighborhood or subdivision level.
So what makes a sellers market? This is when the supply of homes is low, and the demand for homes is above-average. Its actually defined as being when we go for six months having less than a six month supply of homes.
So what makes a buyers market? A buyers market is when the supply of homes is high, and the demand is low.
So why does that matter? You have a lot of people selling homes, but only a couple of people who want to buy, so the many sellers are generally motivated to negotiate more to attract those couple of buyers, since they want/need to sell. Its basic supply/demand theory
Okay, now for an example of just how close you have to look at the specific area in which you want to buy, in order to determine what kind of market it is. I live in the New Orleans Metro area, and its generally a sellers market here. However, because of the Biggert-Waters Flood Insurance Reform Act, there has been the potential for enormous flood insurance rate hikes. Thats caused many people to stop buying in areas that are in high-risk flood zones (anything other than flood zones C, B, or X) because they dont want to get hit with enormous rate hikes later this year. In one neighborhood, the number of homes for sale peaked at 58, a record high. That subdivision is in a buyers market, while subdivisions nearby that are not in a flood zone, are generally experiencing a sellers market.
Lets keep going and zoom in just a little closer. Theres one subdivision Im aware of that has some of the most expensive homes in the city. Its generally a buyers market, because there just arent that many people who can afford that much house right now. HOWEVER, there is on street in there that happens to be the main boulevard, where homes rarely come up for sale. When one does, its snatched up almost immediately. So the rest of the subdivision can be in something of a buyers market, while the main street has its own little sellers market happening. Must be nice for those folks!
The same thing might be seen in subdivisions where one street is on the lake or other, similar situations.In the same breath, its important to note that you might see a buyers market on a street where its the only street that backs up to soccer fields, or a highway, etc.
So whats the point of all this? Take the news reports on the national real estate market with a grain of salt. Its sort of like saying, Its sunny in the U.S. today. Well, sure, in Detroit its sunny, but in New Orleans, its raining. Look closely when buying or renting. Have your agent closely examine the comparable sales and determine if theres anything that may affect the local market where youre buying one way or the other, and act accordingly.
No fees and no obligation to the home seller for using my service. Call Scotts Cell: (602) 696-4570 Or fill out the form on our website!! Contact Us 7521 E Cannon Dr #1 Scottsdale, AZ 85258 United States Our Website: www.cashforyourhomeaz.com/sell-your-home/

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Buyer's Market & Seller's Market As a Realtor

  • 1. What Does It Mean? Buyers Market & Sellers Market Website: www.cashforyourhomeaz.com/sell-your-home/
  • 2. As a Realtor whos been practicing for nearly ten years, I have probably heard it a thousand times: Oh, well, were in a buyers market or Were in a sellers market. So which one is correct?
  • 3. The real estate market is very LOCAL. How local? Extremely. You have to take it further than trying to evaluate the market on a state level, on a city level, even on a neighborhood or subdivision level.
  • 4. So what makes a sellers market? This is when the supply of homes is low, and the demand for homes is above-average. Its actually defined as being when we go for six months having less than a six month supply of homes.
  • 5. So what makes a buyers market? A buyers market is when the supply of homes is high, and the demand is low.
  • 6. So why does that matter? You have a lot of people selling homes, but only a couple of people who want to buy, so the many sellers are generally motivated to negotiate more to attract those couple of buyers, since they want/need to sell. Its basic supply/demand theory
  • 7. Okay, now for an example of just how close you have to look at the specific area in which you want to buy, in order to determine what kind of market it is. I live in the New Orleans Metro area, and its generally a sellers market here. However, because of the Biggert-Waters Flood Insurance Reform Act, there has been the potential for enormous flood insurance rate hikes. Thats caused many people to stop buying in areas that are in high-risk flood zones (anything other than flood zones C, B, or X) because they dont want to get hit with enormous rate hikes later this year. In one neighborhood, the number of homes for sale peaked at 58, a record high. That subdivision is in a buyers market, while subdivisions nearby that are not in a flood zone, are generally experiencing a sellers market.
  • 8. Lets keep going and zoom in just a little closer. Theres one subdivision Im aware of that has some of the most expensive homes in the city. Its generally a buyers market, because there just arent that many people who can afford that much house right now. HOWEVER, there is on street in there that happens to be the main boulevard, where homes rarely come up for sale. When one does, its snatched up almost immediately. So the rest of the subdivision can be in something of a buyers market, while the main street has its own little sellers market happening. Must be nice for those folks!
  • 9. The same thing might be seen in subdivisions where one street is on the lake or other, similar situations.In the same breath, its important to note that you might see a buyers market on a street where its the only street that backs up to soccer fields, or a highway, etc.
  • 10. So whats the point of all this? Take the news reports on the national real estate market with a grain of salt. Its sort of like saying, Its sunny in the U.S. today. Well, sure, in Detroit its sunny, but in New Orleans, its raining. Look closely when buying or renting. Have your agent closely examine the comparable sales and determine if theres anything that may affect the local market where youre buying one way or the other, and act accordingly.
  • 11. No fees and no obligation to the home seller for using my service. Call Scotts Cell: (602) 696-4570 Or fill out the form on our website!! Contact Us 7521 E Cannon Dr #1 Scottsdale, AZ 85258 United States Our Website: www.cashforyourhomeaz.com/sell-your-home/